Paths to integration : earnings, skill investments, and outmigration across immigrant admission categories

Abstract

We document substantial heterogeneity in labor market integration, skill investments, and outmigration across immigrant admission categories. Using newly available data on residence permits in Finland, we establish four facts. First, there are large initial differences in employment and earnings across labor, family, refugee, student, and European Union migrants. Second, these differences diminish substantially over time. Third, the groups make distinct investments in country-specific and general skills. Fourth, both the prevalence of and selection into outmigration vary widely across admission categories. These findings align with models where investments in skills depend on the expected length of stay in the host country.